Actavis' Bond Price Jump

Actavis completed its $21 billion bond offering yesterday. The bond issue, which will be used to pay for the company's acquisition of Allergan, was the second largest corporate bond issue ever. Although you might think that it was difficult for Actavis to sell $21 billion in debt, the company received offers to purchase $90 billion in bonds. The high demand for the bonds proved to be a benefit to investors in the bonds, as the market value of the bonds increased by $334 million today in the first day of trading.